Law and regulation of Covid-19 tax relief in Slovakia

Value Added Tax

  • Postponement for duty to submit VAT returns for natural person and juridical person until 30 June.
  • Postponement for duty to submit VAT returns and the deadline to pay VAT on the basis of tax subject’s notice.

Corporate Income Tax

  • Postponement for duty to pay taxes for every tax payer until 30 June.
  • Remit of interest on late tax income prepayments if the arrears appear during the current period and will be paid until the end of this year.

Social Security Contributions or Payroll Tax

  • Postponement of obligatory social and health payments in the period from March 2020 until June 2020 for juridical persons and self-employed persons. It can be paid in the period of the next 18 months.
  • Absolute exemption from social and health payments for employees, income taxes for those employers, who are unable to assign work to their employees for the reason of adhering to orders putting down the operation as a result of preventive quarantine measures. 

Other relief measures

  • Extension of deadline for customs debt payment (from 10) to 30 – 45 days for third country food importers.
  • Extension of deadline for tax controls and local surveying.
  • Granting of short-term interest-free loans for companies (mainly SMEs) via EXIMBANKA (Export-Import Bank) and the Slovak Guarantee and Development Bank (SZRB) to overcome the period of state of emergency.
  • Automatic extension of validity of MOT and emission tests for vehicles having expired validity from 13 March (including) until 12 June.
  • Financing of costs of supported technologies producing electricity during the period March– December (which would lead to the lower price of tariff for the operation of the system)
  • Negotiations with bank and finance sectors on possible postponement of loan instalments, mortgages and leasing without negative records in register for the debtor. Negotiations on possible bank product that would help companies to overcome the adverse financial situation – for that purpose, banks would be proportionally pardoned the bank levy payments. Negotiations on the possibility that insurance companies would not have to pay the levies.
  • Negotiations with energy suppliers for the purpose of exemption from companies to pay penalties for not complying with arranged diagram of electric energy consumption.
  • Exemption for companies from paying penalties if they are unable to carry out public contracts.
  • Restriction of new and planned controlling actions of companies and businesses until June.
  • Negotiations on the EU level on enabling of use of euro funds for the purpose of covering of the effects of COVID-19 and financial rehabilitation.

Additional comments

On March 18, the Slovak Ministry of Economy proposed to the government package of state-aid measures. Measures are divided into 4. scopes:

  1. Immediately feasible measures described in this summary)
  2. Measures requiring legislative adjustments
  3. Measures aimed at prevention and system of actions for companies
  4. Measures supporting repeated economic growth